BINDURA Nickel Corporation (BNC) is next year projecting to produce over 8 000 tonnes of nickel, up from 6 613 tonnes recorded for the year ended March 31, 2016.
BY VICTORIA MTOMBA
In an interview on the sidelines of the company’s analyst briefing on Wednesday, BNC managing director Batisai Manhando said: “We are looking at between 7 000 tonnes and 8 000 tonnes and this is the most important matrix.”
He said a smelter project was progressing well and its commissioning was expected during the third quarter of the year-ending March 31, 2017. The board had concluded its studies on the feasibility of converting the smelter to a plant that will process Platinum Group of Metals.
Manhando said the refinery should increase profitability up to six times, while revenues were expected to go up by about 30%.
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“Most of the material (for the smelter) will be coming next month,” Manhando said.
He said the smelter would use a lot of power and there was no use in fast-tracking the project when nickel prices were low.
“We are talking to the Ministry of Energy and Zesa because power becomes an issue when we have a smelter,” he said.
Manhando said the company had no plans to retrench workers yet although it would continue to review its business model.
Turnover during the year 2016 was down 46,4% to $42,3 million from $79 million in 2015 and the average nickel price was lower at $6 737 per tonne compared to $10 855 per tonne in 2015.
Gross profit for the group declined by 75% to $9,1 million from $36,1 million in 2015, while operating profit was $1,8 million compared to $15,8 million the previous year.
Profit after tax for the group stood at $0,65 million, indicating a 94% decline from $11,2 million in 2015.